# In the matter of Ramswarup Industries Limited IA (IB) No. 538,628 & 635-KB-2021 in CP (IB) No. 349-KB-2017

> NCLT judgment dated 2022-04-06. Citation: TCN-2022-NCLT-03355. The case involves Ramsarup Industries Limited, which was admitted into Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 6 Apr 2022
- **Citation:** TCN-2022-NCLT-03355
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ramswarup-industries-limited-ia-ib-no-538628-635-kb-2021-in-cp-ib-no-349-kb-2017-f6e677fb

## Summary

### Background

The case involves Ramsarup Industries Limited, which was admitted into Corporate Insolvency Resolution Process (CIRP) on 08 January 2018. A resolution plan submitted by S S Natural Resources Private Limited was approved by the Committee of Creditors (CoC) and the Adjudicating Authority. However, the implementation of the plan faced several challenges, including appeals before the NCLAT and the Supreme Court. The Monitoring Agency was formed to oversee the implementation of the Resolution Plan. CFM Asset Reconstruction Private Limited, a financial creditor, filed applications seeking liquidation of the Corporate Debtor and payment of interest for the delayed implementation. The SRA also filed an application seeking directions for cooperation in the implementation of the

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## Facts

Ramsarup Industries Limited was admitted into CIRP on 08 January 2018. S S Natural Resources Private Limited's resolution plan was approved by the CoC with 74.41% voting share and by the Adjudicating Authority on 04 September 2019. The Monitoring Agency was formed to oversee the implementation of the Resolution Plan. Nine appeals were preferred before the NCLAT, including one by the SRA challenging additional financial obligations. The NCLAT dismissed the appeals on 04 March 2021, expressing displeasure with the SRA's conduct. The SRA preferred a Civil Appeal No.1142/2021 before the Supreme Court, which was dismissed on 04 May 2021. Vanguard Credit & Holdings Private Limited also filed Civil Appeal No.1688/2021 before the Supreme Court, which was dismissed on 02

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should order liquidation of the Corporate Debtor due to the …

**Ratio:** Section 33(4) of the Code enjoins the Adjudicating Authority to pass an order of

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**Reasoning:** The SRA was at fault for not taking steps for implementation of the approved Resolution

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**Interpretation:** The term "shall" in section 33(4) is to be construed in the

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**Application:** The NCLT did not order liquidation, instead directing the SRA to transfer the

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** S S Natural…
- **Respondents:** Ramsarup Industrie…; Monitoring Agency…

## Timeline

- **2018-01-08 — Admission in…**: Ramsarup Industries Limited was admitted into Corporate Insolvency Resolution Process…
- **2019-09-04 — Approval of Resolution…**: The Resolution Plan submitted by S S Natural Resources Private Limited was approved by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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